French food giant Danone SA has entered into an agreement to offload two of its prominent U.S. dairy producers, Horizon Organic and Wallaby, in a strategic move to streamline its focus. Platinum Equity LLC, a renowned U.S. global investment firm, is set to acquire the dairy farms, marking a pivotal moment for both entities.
Danone Agrees Sale Of 2 US Dairy Farms: Danone’s Bold Decision
In a statement released on Tuesday, Danone revealed its intention to divest from the premium organic dairy market, emphasizing a commitment to concentrate on its core portfolio. The deal with Platinum Equity aligns with Danone’s long-term strategy, evaluating businesses that fall outside its “priority areas” of focus.
The Enigma of Unrevealed Figures
While the exact sale price remains undisclosed, Danone emphasized its decision to retain a minority stake in both Horizon Organic and Wallaby, leaving the financial intricacies of the transaction shrouded in mystery. The move is a part of Danone’s initiative to sharpen its focus, with Horizon and Wallaby representing approximately 3% of its global revenue.
Danone Agrees Sale Of 2 US Dairy Farms : Conditions and Finalization
The finalization of the deal is contingent upon undisclosed conditions, according to Danone. The company remains tight-lipped about the specifics, maintaining an air of suspense around when the transaction will be completed.
Platinum Equity’s Diverse Portfolio: A Symphony of Industries
Platinum Equity, acting on behalf of institutional investors, boasts a portfolio of over 50 companies, spanning industries such as cookie manufacturing, wine production, and frozen seafood. The acquisition of Horizon Organic and Wallaby adds a new note to Platinum Equity’s diverse symphony of investments.
Danone Agrees Sale Of 2 US Dairy Farms: The Powerhouse Players
Danone, founded in Spain in 1919, has evolved into a global powerhouse, selling products in more than 120 countries. With flagship brands including Evian water, Silk soy milk, and Activia yogurt, Danone’s decision to reshape its portfolio comes after a thorough review, citing historic underperformance in certain markets.
Danone Agrees Sale Of 2 US Dairy Farms : Stocks in the Spotlight
Shares in Danone, listed on the Euronext Paris stock exchange, experienced a modest uptick early Tuesday afternoon, reflecting investor confidence in the strategic move. The stocks were valued at €59.03 ($64.70), a marginal increase from the closing price of €58.68 on December 31.
Echoes of Silence: No Immediate Comments
As of now, both Danone and Platinum Equity have not provided immediate comments regarding the transaction. Details surrounding the conditions for finalization and the exact stake retention by Danone continue to fuel speculation among industry observers.
